Finance Minister in urgent Budget talks with ANC leaders – report

Enoch Godongwan

Cape Town – Finance Minister Enoch Godongwana has reportedly been summoned to Luthuli House to present his final budget proposal to the ANC’s top officials.

According to Times Live, the meeting, set for Monday, aims to secure the party’s approval before discussions with the Government of National Unity (GNU) partners.

The minister is set to present the 2025/2026 national budget on Wednesday, after delays due to Cabinet disagreements over a proposed 2% VAT increase to address a R60 billion shortfall.

The National Treasury is under pressure to finalise the budget within two days after weeks of cabinet deadlock.

President Cyril Ramaphosa remains optimistic that an agreement will be reached before Wednesday’s budget speech.

Godongwana’s proposal for a VAT hike has faced resistance, leading to the cancellation of February’s budget tabling.

Reports on Sunday sais that Godongwana had reportedly indicated that a tax increase will not be necessary if the Covid-19 Social Relief of Distress (SRD) grant is discontinued.

While some discussions continue around a 0.50% to 1% VAT hike, the proposal has faced opposition from political parties within the GNU.

Speculation suggests the ANC may seek support from the EFF if internal GNU negotiations fail.

In a recent interview with Sunday Times, Godongwana said that eliminating the SRD grant would remove the need for a VAT increase, The Citizen reported.

The Treasury plans to use the additional revenue to sustain the Covid-19 grant, with phased VAT increases expected over the next two years.

The proposal remains under negotiation, with final decisions imminent.

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